What did Kwon Min-soo say about the Bank of Korea’s next interest rate decision?

Kwon said monetary policy should be carried out in a balanced and cautious way, with flexibility when needed. He warned that higher rates can bring policy benefits but also side effects, and said growth, inflation and financial stability should all be considered.

Why is a back-to-back BOK rate hike being watched so closely?

Attention is focused on next week’s meeting because the BOK has repeatedly stressed its commitment to curbing inflation, while recent conditions include solid growth from semiconductor exports and consumer prices running well above the bank’s 2 percent target. The board already lifted the rate to 2.75 percent in July.

New BOK senior deputy gov. calls for prudent, flexible monetary policy

Q: When will Kwon Min-soo join the Bank of Korea rate-setting board?

Kwon began his four-year term as senior deputy governor on Friday and will participate as a board member starting with next Thursday’s rate-setting meeting. He is also an ex officio member of the Monetary Policy Board.

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Summary

New Bank of Korea Senior Deputy Gov. Kwon Min-soo called for prudent and flexible monetary policy in Seoul on Friday as expectations grow for a rate hike at next week’s meeting amid accelerating inflation. He said rate decisions must balance growth, inflation and financial stability. Kwon began his four-year term Friday and will join the Monetary Policy Board at next Thursday’s rate-setting meeting.

Key Facts

Kwon Min-soo began his four-year term as senior deputy governor on Friday and will serve as an ex officio member of the Monetary Policy Board.
The BOK raised its benchmark rate by 0.25 percentage point to 2.75 percent at its July meeting.
The board has cited robust semiconductor-driven growth and consumer prices well above its 2 percent target.
Kwon said the BOK must consider growth trends, inflation and financial stability when deciding interest rates.

By Yonhap

Published Aug 21, 2026 2:46 pm KST

Bank of Korea (BOK) Senior Deputy Gov. Kwon Min-soo speaks during his inauguration ceremony held at the BOK's headquarters in Seoul, Friday. Courtesy of BOK

The new senior deputy governor of the Bank of Korea (BOK) said Friday that monetary policy should be implemented in a prudent and flexible manner as expectations grow for a rate hike at next week's policy meeting amid accelerating inflation.

"While raising interest rates can have certain policy benefits, there may also be side effects," Senior Deputy Gov. Kwon Min-soo told reporters after his inauguration ceremony.

"I believe this is a time when we must make policy decisions in a balanced and cautious manner, while remaining flexible when necessary," he said. "When deciding interest rates, we must take into account both growth trends and inflation, as well as financial stability."

Kwon, who began his four-year term as senior deputy governor Friday, serves as an ex officio member of the Monetary Policy Board and will participate as a board member starting with next Thursday's rate-setting meeting.

His comments came after the board raised the benchmark rate by 0.25 percentage point to 2.75 percent at its last meeting in July.

As the central bank has repeatedly stressed its commitment to curbing mounting inflationary pressure, whether the BOK will deliver a rare back-to-back rate hike next week is drawing attention.

The board cited solid economic growth driven by robust semiconductor exports and high consumer prices well above the BOK's 2 percent target.

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